The United Voice for Affordable Housing

INDUSTRY INSIGHT JANUARY 2024

NOTE FROM THE EXECUTIVE DIRECTOR

"In this period of transition,

we thank you as always for your leadership and support!"

This winter has been a time of transition for CHC, and we’re embracing the changes underway and still to come.

As we shared earlier this month, Marina Wiant, our longtime policy director, has started her new job leading TCAC and CDLAC, and we are actively seeking a new Policy Director to help guide our work in Sacramento. Please share this job posting with your networks. In the meantime, we are being ably assisted in the Capitol by Graciela Castillo-Krings from Sacramento Advocates, whose work in and out of the building we have admired for years.

The leadership of CHC’s Board of Directors is also in transition this month: I want to thank Ann Silverberg, CEO of Related California's Northern California Affordable and Northwest Divisions, for her two years of service as chair. We would like to welcome Sean Spear, President & CEO of Community HousingWorks, as our incoming chair. The CHC board itself also has a number of new faces, as we have expanded our leadership to 30 members and are welcoming a diverse group of eight new leaders this winter. See below for more information about each of the new members of the board.

Ann Silverberg - Outgoing Chair

Sean Spear - Incoming Chair

President & CEO, Community Housing Works

While CHC continues to evolve as an organization, the policy landscape we work in is also in transition, as we confront a challenging fiscal environment for the first time in years and adapt to new leadership in both houses of the Legislature. Senator Mike McGuire (D-Healdsburg), will be sworn in on February 5thas the next Senate President Pro Tem, replacing Sen. Toni Atkins (D-San Diego), who is termed out next year and has announced she will be running for governor. We are already actively working with new Assembly Speaker Robert Rivas (D-Salinas) and the incoming chairs of several important policy committees, including Asm. Chris Ward (D-San Diego), chair of the Assembly Committee on Housing and Community Development.

Amidst all of this change, the legislative session is already in full swing, with the bill introduction deadline in only a few weeks and discussions underway around CHC bill sponsorship. We will have more to update you on that front soon.

In this period of transition, we thank you as always for your leadership and support!

Sincerely,

Ray Pearl

2024 POLICY FORUM

Save the date to join us in-person for networking, interactive policy discussions and

a celebration of the 2024 California Housing Hall of Fame honorees.

May 16th, 2024, 8:30am-2:00pm

Learn more about CHC's California Housing Hall of Fame and submit your nominees today!

Self-select your sponsorship level today or contact Nancy Martin for more information.

We will sponsor!

Learn about CHC's California Housing Hall of Fame and submit your nominees.

Hall of Fame Nomination

IN CASE YOU MISSED IT

State Senate leader Toni Atkins announced that she is running for governor in 2026, joining the race to replace termed-out Governor Gavin Newsom. Atkins joins a field that includes several other high-ranking public officials, including Lt. Gov. Eleni Kounalakis, State Superintendent of Public Instruction Tony Thurmond, and former state Controller Betty Yee. Attorney General Rob Bonta is expected to run as well.

In other campaign news, former Oakland mayor Libby Schaaf has announced that she will be running for State Treasurer in 2026 in a bid to succeed Treasurer Fiona Ma, who is running for lieutenant governor. Former Assembly Speaker Anthony Rendon has also indicated that he will run for Treasurer after he terms out in 2024.

Governor Newsom released his January budget proposal earlier this month forecasting a $37.9 billion budget shortfall and proposing $8.5 billion in “belt tightening” measures that include cuts to key affordable housing programs—including the “enhanced” $500 million Low Income Housing Tax Credit. The Governor has proposed maintaining the existing $120 million LIHTC program.

An additional $1.2 billion from programs that support the production and preservation of affordable housing will face cuts including:

Multifamily Housing Program (MHP): The Governor proposes cutting $250 million while leaving $75 million in the 2023-24 budget.

Infill Infrastructure Grant Program (IIG): The Governor proposes cutting $200 million and leaving $25 million in 2023-24 for this purpose.

CalHome Program: The Governor proposes cutting $152.5 million.

Veteran Housing and Homelessness Prevention Program (VHHP): The Governor proposes cutting $50 million.

AFFORDABLE HOUSING NEWS OF THE MONTH

Could a new state agency solve California’s housing crisis? (San Francisco Chronicle)

Affordable housing gets boost in Congressional tax reform proposal (Bloomberg)

Approaching Bay Area deadline a ‘test case’ for California’s housing crisis (CalMatters)

Gavin Newsom’s Project Homekey dodges a bullet, but long-term legal threat remains (San Francisco Chronicle)

L.A. City Council votes to protect tenants while they await rental assistance (Los Angeles Times)

California sues homeless housing developer for $114 million (CalMatters)

This is one way Californians end up ‘incredibly vulnerable’ to homelessness, new study reveals (San Francisco Chronicle)

Join CHC in Supporting Project Destined & HPN's

Affordable Housing Bridge Program

Partner Today!

Would you like to learn how to fill open positions in your organization by gaining access to a robust recruiting tool?

Would you like to learn how you can create bench strength for future growth?

Are you committed to advance racial equity by increasing talent and demonstrate affordable housing as a career path?

Join CHC members Eden Housing, The Pacific Companies, Community HousingWorks and US Bank in their support of the Affordable Housing Bridge Program.

FEDERAL UPDATE FROM DAVID GASSON

All the groundwork we have been doing to prepare for a potential tax bill has finally come to fruition over the past few weeks. Shortly after the House and Senate returned from the holiday recess, Senate Finance Committee Chairman Ron Wyden (D-OR) and Ways and Means Chairman Jason Smith (R-MO) announced an agreement on a tax bill that, among other provisions, would provide around $6.3 billion for the LIHTC program. As you can see from the bill, if passed the states will receive three years of additional 9% allocation and the bond test will be reduced to 30% for 2024 & 2025. While we worked to include more of our priorities, we simply did not have enough revenue to get the basis boosts or the bond test down to 25%. I cannot begin to describe to you the work that went in to including the LIHTC in the bill as two weeks prior to this announcement, the LIHTC was not included in the package.

While there are a few people that directly influenced the outcome of these discussions, as someone that was personally involved from the beginning of talks, I cannot say enough about the tenacity and determination of Senator Maria Cantwell (D-WA). Her role in the talks led to commitments from both Senate Majority Leader Schumer and Finance Chairman Wyden stating that no bill would advance that did not include housing. I also want to call out our lead Republican sponsor in the House, Congressman Darin LaHood (R-IL), who rallied support for Chairman Smith to include the LIHTC. I should also mention the support of Democratic Leader Hakeem Jeffries. The House Democrats have been largely focused on the Child Tax Credit and benefiting low-income households with children. Nonetheless he too committed that no bill could proceed without housing being included.